Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $4.45 million on TV, radio, and print advertising this year for the campaign. The ads are expected to boost sales of the Mini Mochi Munch by $10.82 million this year and $8.82 million next year. In addition, the company expects that new consumers who try the Mini Mochi Munch will be more likely to try Kokomochi's other products. As a result, sales of other products are expected to rise by $2.26 million each year.Kokomochi's gross profit margin for the Mini Mochi Munch is 36%, and its gross profit margin averages 24% for all other products. The company's marginal corporate tax rate is 30% both this year and next year. What are the incremental earnings associated with the advertising campaign?

YEAR 1

Incremental Earnings Forecast ($ million)

Sales of Mini Mochi Munch $ _____

Other Sales $ _______

Cost of Goods Sold $ ________

Gross Profit $________

Selling, General, and Administrative $ ______

Depreciation $ _____

EBIT $ ______

Income Tax at 35% $ ______

Unlevered Net Income $______

Calculate the unlevered net income for year 2 below:

YEAR 2

Sales of Mini Mochi Munch $ _____

Other Sales $ ______

Cost of Goods Sold $ ______

Gross Profit $ _______

Selling, General, and Administrative $ _______

Depreciation $ ________

EBIT $ _______

Income Tax at 35% $ ______

Unlevered Net Income $ _____ PLEASE ANSWER ENTIRE QUESTION!